Bank deposits in Cyprus grew by €562.3 million in July, while loans fell by €68.7 million

Deposits in Cyprus’s financial institutions grew by €562.3 million in July, while the total volume of loans fell by €68.7 million. The data was published by the Central Bank of Cyprus.

The inflow was driven primarily by Cyprus residents, whose deposits increased by €603.2 million over the month. Household deposits rose by €195.7 million, those of non-financial corporations by €257.1 million, and those of other domestic sectors by a further €150.4 million.

As a result, the total outstanding balance of deposits reached €59.2 billion — more than twice the outstanding balance of loans. The annual growth rate of deposits accelerated to 6.2%, compared with 5% in June. At the same time, the July inflow was slightly smaller than in June, when deposits increased by €601.2 million.

The loan portfolio, by contrast, contracted by €68.7 million after growing by €499.4 million the previous month. The Central Bank attributed the decline mainly to the repayment of €90 million by residents of other euro area countries.

Loans to Cyprus residents themselves nevertheless increased, albeit marginally, by €1.8 million. Household borrowing rose by €65.7 million, while loans to non-financial corporations fell by €79.6 million; other domestic sectors added €15.8 million.

The total outstanding balance of loans stood at €28.3 billion at the end of July. The annual growth rate of lending remains high, but slowed to 11.1% from 11.6% in June.